Most of the difficulty in a property transaction is vocabulary. The concepts are not complicated; the words are unfamiliar, they arrive quickly, and everyone using them assumes you already know. These are the twenty-four that do most of the work. Where a term means different things in different places, the definition given is the general sense rather than any particular local rule.
| Amortization | The schedule by which a loan is repaid over its term. Early payments are mostly interest because interest is charged on the outstanding balance. |
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| Appraisal | A valuation of a property, most often carried out for a lender to confirm the property is adequate security for a loan. |
| Appreciation | An increase in the value of a property over time. The opposite, depreciation, is equally possible and much less discussed. |
| Closing | The point at which money and legal title change hands and the transaction is complete. |
| Closing costs | The fees, taxes and charges payable at completion, distinct from the price of the property itself. |
| Comparable sale | A recently completed sale of a similar property nearby, used as evidence of value. Completed sales are evidence; asking prices are not. |
| Contingency | A condition written into a contract that must be satisfied for the sale to proceed, such as a satisfactory inspection or a loan approval. |
| Covenant | A restriction recorded against land limiting what may be built or done there. It binds later owners, not only the one who agreed to it. |
| Deed | The document that transfers ownership of land from one party to another. |
| Down payment | The part of the purchase price paid from the buyer's own funds rather than borrowed. |
| Easement | A right held by someone else to use part of the land, commonly for access, drainage or utilities. |
| Encumbrance | Any claim, right or liability attached to a property that limits its use or transfer. |
| Equity | The value of a property less the debt secured on it. It rises through repayment of principal and through price increases. |
| Escrow | Money or documents held by a neutral third party until agreed conditions are met, and also the account a lender uses to collect taxes and insurance. |
| Fixed rate | An interest rate that does not change for a defined period, which may be shorter than the term of the loan. |
| Freehold and leasehold | Two different things being sold: outright ownership of the land, or a long right to occupy it for a period, with obligations attached. |
| Lien | A claim against a property securing a debt. Liens are normally cleared out of the sale proceeds at closing. |
| Loan-to-value | The loan expressed as a proportion of the property's value. A lower ratio usually means a lower rate. |
| Plat | A recorded map dividing land into lots and showing streets and easements. The reason lots on one street are all the same width. |
| Principal | The amount borrowed and still outstanding, as distinct from the interest charged on it. |
| Setback | The minimum distance a building must sit from a boundary or road, fixed by local rules and visible in the alignment of a street. |
| Title | The legal ownership of a property, and the record of that ownership, together with everything attached to it. |
| Underwriting | The lender's assessment of whether to lend, testing both the borrower's ability to repay and the property's adequacy as security. |
| Zoning | Local rules governing what land may be used for and what may be built on it. Changes to zoning nearby can change a property's value in either direction. |